GFNorte Obtains Profits of Ps$ 527.2 Million Pesos During 1st Quarter of 2001

Apr 27, 2001, 01:00 ET from GFNorte

    MONTERREY, Mexico, April 27 /PRNewswire/ --
 
     -- GFNorte's net profit for the first quarter of 2001 is 14% higher than
        same period in 2000 and 24% higher for the Banking Sector.
     -- ROE for GFNorte reached 26.8% and 29.6% for the Banking Sector.
     -- Banking Sector performing commercial and consumer credit loan portfolio
        grew 13% from 1st quarter 2000 to 1st quarter 2001.
     -- Past due loan ratio of the Banking Sector ended the quarter with a
        level of 5.3% and a past-due loan coverage of 100.4%.
     -- Banking Sector capitalization ratio is 13.4%, after applying 2003
        capitalization rules.
     -- GFNorte acquires a package of mortgage loans from IPAB.
     -- Strategic alliance with AOL (America Online).
 
     Highlights
 
     Financial Group
     GFNorte and its subsidiaries achieved profits of Ps527.2 million pesos in
 the first quarter of 2001, a figure 14% higher than the same period of
 previous year.  Return on Equity for the quarter reached 26.8%. With regard to
 the accumulated Profits for the period, Group's Banking Sector represented
 91% of the profits of the Financial Group, generating Ps480.4 million pesos,
 24% higher than previous year. Meanwhile, the Brokerage Sector earned profits
 of Ps12.2 million pesos, the Auxiliary Organizations Sector reported
 Ps22.2 million and the Long Term Savings Sector of Ps6.9 million pesos.
 GFNorte assets under management at the end of the first quarter of 2001, which
 includes deposits, third party deposits and mutual funds of the Banking
 Sector, as well as Brokerage House and Afore assets under management, reached
 Ps193,337 million pesos.
 
     Banking Sector
     Deposits. -- Demand deposits in the Banking Sector grew 6.3% during the
 first quarter of 2001 compared to the same period of previous year.  This made
 possible to continue with the non-interest bearing deposits per branch
 leadership in the Mexican banking system.  Meanwhile, overall deposits of the
 public increased by 13.4% during the same period, making possible to continue
 gaining market share.
     Loans. -- The Banking Sector of GFNorte had a 13% increase with respect to
 the same quarter of previous year in its performing commercial and consumer
 credit loan portfolio.  Total loans portfolio reached Ps79,936 million pesos
 at the end of the first quarter of 2001.
     As part of Banorte's strategy to increase its credit loan portfolio,
 during this quarter, the "Programa Agroactivo" was developed in conjunction
 with FIRA (a Banco de Mexico trust oriented to Agriculture), with the
 objective to supply the credit needs to the agroindustrial sector. Also,
 Banorte signed with Nacional Financiera, SNC and the Asociacion Mexicana de
 Franquicias (Mexican Franchise Association) a collaboration agreement with the
 objective of supporting programs and packaged consulting services, as well as
 technical and financial assistance to businesses willing to establish a
 franchise.
     Asset Quality. -- The Banking Sector ended the quarter with a past-due
 loan portfolio balance of Ps4,210 million pesos, an 8% reduction against same
 quarter of previous year, resulting in a past-due loan ratio of 5.3%.  The
 loan coverage reserves for the past-due portfolio reached 100.4%.
     Capitalization. -- The capitalization ratio at the end of the first
 quarter of 2001, applying the strict capitalization criteria that will go into
 effect in the year 2003, reached for Banorte a level of 12% for credit risk
 and 10.7% when adding market risk. Bancentro, reached 28.5% and 19.8%,
 respectively. This made possible for the Banking Sector to end the quarter
 with a capitalization ratio of 13.4% for credit risk and 11.6% adding market
 risk, figures well above authority's requirements, leaving Banorte with a
 strong position for future growth.
     Non Interest Expense. -- The Non Interest Expense for the Banking Sector
 showed a considerable decline of 6.8% with respect to last quarter.  This
 decrease is part of the expense rationalization efforts that have been carried
 out in GFNorte.
     Recovery Bank. -- As part of its strategy, GFNorte has continued to
 exploit its strength in the recovery business.  On March of 2001, it once
 again participated in a IPAB portfolio bidding process, achieving the
 acquisition of 3 packages of Bancrecer's mortgage portfolio worth
 Ps2,061 million pesos, in which GFNorte paid Ps559.4 million pesos.
     ATM alliance with Bancrecer.-- GFNorte's Banking Sector signed on
 March 2001 an agreement with Bancrecer so that Banorte's clients could use
 Bancrecer's 1,000 ATM's web with the same benefits they actually have in
 Banorte, and Bancrecer's clients could use Banorte's 1,468 ATM's web as well.
 
     Brokerage Sector
     The Brokerage Sector of the Group, which consists of BANORTE BROKERAGE
 HOUSE, generated Ps12.2 million pesos in profits during this quarter.  This
 figure is lower than the one on the same quarter of previous year because of
 the Group's financial restructuring that took place on the third quarter of
 2000, by which the money market position and its earnings were transferred to
 Banorte.  Brokerage House's assets under management ended the quarter with a
 balance of Ps70,868 million pesos.
 
     Long Term Savings Sector
     GFNorte continued to increase its market participation in the pension
 management sector through the BANORTE-GENERALI AFORE company, with a market
 share of 8.9% and 1,636,750 affiliates with the lowest membership cost in the
 industry. The funds under management grew to Ps9,819 million pesos by the end
 of the quarter, 44% greater than same quarter of previous year.  In the
 Insurance business, SEGUROS BANORTE-GENERALI increased in 8.2% the total sold
 premiums for the first quarter of 2001, compared to the same period of
 previous year.  The accumulated profit of this Sector for the first quarter
 was Ps6.9 million pesos, a figure lower than same period of previous year,
 mainly because last year first quarter had extraordinary earnings originated
 by mark to market valuation on the Seguros Banorte-Generali and Pensiones
 Banorte-Generali portfolios.
 
     Auxiliary Organizations Sector
     Important loan portfolio growth for FACTOR BANORTE of 33% in the first
 quarter of 2001 compared to same quarter of previous year, while maintaining
 fully reserved their past-due loans. ARRENDADORA BANORTE (Leasing company)
 had a loan portfolio growth of 9%, as well as a decline on the past-due loan
 ratio, from 4.2% to 3.3% in the first quarter of 2001 compared to the same
 quarter of previous year.  The accumulated profit of this Sector for the first
 quarter of 2001 was Ps22.2 million pesos, 51% higher than same period of
 previous year.
 
     Alliances
     GFNorte aware for participating on the financial business globalization,
 has developed some specific alliances with international prestigious firms,
 all of them oriented toward value generation.  During the first quarter of
 2001, GFNorte signed an alliance with AOL (America Online), through which AOL
 users will have access to the GFNorte product portfolio, meanwhile GFNorte's
 clients will be benefited with the innovated web services offered by AOL.
 
                        NET PROFIT FOR GFNORTE'S SECTORS
                                (Million Pesos)
 
         SECTOR                               NET PROFIT           NET PROFIT
                                             1st quarter          1st quarter
 
                                                 2001                 2000
 
     BANKING SECTOR                             $480.4               $386.4
 
     BROKERAGE SECTOR                           $ 12.2               $ 18.8
 
     LONG TERM SAVINGS SECTOR                   $  6.9               $ 45.4
 
     AUXILIARY ORGANIZATIONS SECTOR             $ 22.2               $ 14.7
 
     GFNORTE'S HOLDING COMPANY                  $  5.4               $ (1.4)
 
     GFNORTE'S NET PROFIT                       $527.2               $463.8
 
     Figures as of March 2001
 
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SOURCE GFNorte
    MONTERREY, Mexico, April 27 /PRNewswire/ --
 
     -- GFNorte's net profit for the first quarter of 2001 is 14% higher than
        same period in 2000 and 24% higher for the Banking Sector.
     -- ROE for GFNorte reached 26.8% and 29.6% for the Banking Sector.
     -- Banking Sector performing commercial and consumer credit loan portfolio
        grew 13% from 1st quarter 2000 to 1st quarter 2001.
     -- Past due loan ratio of the Banking Sector ended the quarter with a
        level of 5.3% and a past-due loan coverage of 100.4%.
     -- Banking Sector capitalization ratio is 13.4%, after applying 2003
        capitalization rules.
     -- GFNorte acquires a package of mortgage loans from IPAB.
     -- Strategic alliance with AOL (America Online).
 
     Highlights
 
     Financial Group
     GFNorte and its subsidiaries achieved profits of Ps527.2 million pesos in
 the first quarter of 2001, a figure 14% higher than the same period of
 previous year.  Return on Equity for the quarter reached 26.8%. With regard to
 the accumulated Profits for the period, Group's Banking Sector represented
 91% of the profits of the Financial Group, generating Ps480.4 million pesos,
 24% higher than previous year. Meanwhile, the Brokerage Sector earned profits
 of Ps12.2 million pesos, the Auxiliary Organizations Sector reported
 Ps22.2 million and the Long Term Savings Sector of Ps6.9 million pesos.
 GFNorte assets under management at the end of the first quarter of 2001, which
 includes deposits, third party deposits and mutual funds of the Banking
 Sector, as well as Brokerage House and Afore assets under management, reached
 Ps193,337 million pesos.
 
     Banking Sector
     Deposits. -- Demand deposits in the Banking Sector grew 6.3% during the
 first quarter of 2001 compared to the same period of previous year.  This made
 possible to continue with the non-interest bearing deposits per branch
 leadership in the Mexican banking system.  Meanwhile, overall deposits of the
 public increased by 13.4% during the same period, making possible to continue
 gaining market share.
     Loans. -- The Banking Sector of GFNorte had a 13% increase with respect to
 the same quarter of previous year in its performing commercial and consumer
 credit loan portfolio.  Total loans portfolio reached Ps79,936 million pesos
 at the end of the first quarter of 2001.
     As part of Banorte's strategy to increase its credit loan portfolio,
 during this quarter, the "Programa Agroactivo" was developed in conjunction
 with FIRA (a Banco de Mexico trust oriented to Agriculture), with the
 objective to supply the credit needs to the agroindustrial sector. Also,
 Banorte signed with Nacional Financiera, SNC and the Asociacion Mexicana de
 Franquicias (Mexican Franchise Association) a collaboration agreement with the
 objective of supporting programs and packaged consulting services, as well as
 technical and financial assistance to businesses willing to establish a
 franchise.
     Asset Quality. -- The Banking Sector ended the quarter with a past-due
 loan portfolio balance of Ps4,210 million pesos, an 8% reduction against same
 quarter of previous year, resulting in a past-due loan ratio of 5.3%.  The
 loan coverage reserves for the past-due portfolio reached 100.4%.
     Capitalization. -- The capitalization ratio at the end of the first
 quarter of 2001, applying the strict capitalization criteria that will go into
 effect in the year 2003, reached for Banorte a level of 12% for credit risk
 and 10.7% when adding market risk. Bancentro, reached 28.5% and 19.8%,
 respectively. This made possible for the Banking Sector to end the quarter
 with a capitalization ratio of 13.4% for credit risk and 11.6% adding market
 risk, figures well above authority's requirements, leaving Banorte with a
 strong position for future growth.
     Non Interest Expense. -- The Non Interest Expense for the Banking Sector
 showed a considerable decline of 6.8% with respect to last quarter.  This
 decrease is part of the expense rationalization efforts that have been carried
 out in GFNorte.
     Recovery Bank. -- As part of its strategy, GFNorte has continued to
 exploit its strength in the recovery business.  On March of 2001, it once
 again participated in a IPAB portfolio bidding process, achieving the
 acquisition of 3 packages of Bancrecer's mortgage portfolio worth
 Ps2,061 million pesos, in which GFNorte paid Ps559.4 million pesos.
     ATM alliance with Bancrecer.-- GFNorte's Banking Sector signed on
 March 2001 an agreement with Bancrecer so that Banorte's clients could use
 Bancrecer's 1,000 ATM's web with the same benefits they actually have in
 Banorte, and Bancrecer's clients could use Banorte's 1,468 ATM's web as well.
 
     Brokerage Sector
     The Brokerage Sector of the Group, which consists of BANORTE BROKERAGE
 HOUSE, generated Ps12.2 million pesos in profits during this quarter.  This
 figure is lower than the one on the same quarter of previous year because of
 the Group's financial restructuring that took place on the third quarter of
 2000, by which the money market position and its earnings were transferred to
 Banorte.  Brokerage House's assets under management ended the quarter with a
 balance of Ps70,868 million pesos.
 
     Long Term Savings Sector
     GFNorte continued to increase its market participation in the pension
 management sector through the BANORTE-GENERALI AFORE company, with a market
 share of 8.9% and 1,636,750 affiliates with the lowest membership cost in the
 industry. The funds under management grew to Ps9,819 million pesos by the end
 of the quarter, 44% greater than same quarter of previous year.  In the
 Insurance business, SEGUROS BANORTE-GENERALI increased in 8.2% the total sold
 premiums for the first quarter of 2001, compared to the same period of
 previous year.  The accumulated profit of this Sector for the first quarter
 was Ps6.9 million pesos, a figure lower than same period of previous year,
 mainly because last year first quarter had extraordinary earnings originated
 by mark to market valuation on the Seguros Banorte-Generali and Pensiones
 Banorte-Generali portfolios.
 
     Auxiliary Organizations Sector
     Important loan portfolio growth for FACTOR BANORTE of 33% in the first
 quarter of 2001 compared to same quarter of previous year, while maintaining
 fully reserved their past-due loans. ARRENDADORA BANORTE (Leasing company)
 had a loan portfolio growth of 9%, as well as a decline on the past-due loan
 ratio, from 4.2% to 3.3% in the first quarter of 2001 compared to the same
 quarter of previous year.  The accumulated profit of this Sector for the first
 quarter of 2001 was Ps22.2 million pesos, 51% higher than same period of
 previous year.
 
     Alliances
     GFNorte aware for participating on the financial business globalization,
 has developed some specific alliances with international prestigious firms,
 all of them oriented toward value generation.  During the first quarter of
 2001, GFNorte signed an alliance with AOL (America Online), through which AOL
 users will have access to the GFNorte product portfolio, meanwhile GFNorte's
 clients will be benefited with the innovated web services offered by AOL.
 
                        NET PROFIT FOR GFNORTE'S SECTORS
                                (Million Pesos)
 
         SECTOR                               NET PROFIT           NET PROFIT
                                             1st quarter          1st quarter
 
                                                 2001                 2000
 
     BANKING SECTOR                             $480.4               $386.4
 
     BROKERAGE SECTOR                           $ 12.2               $ 18.8
 
     LONG TERM SAVINGS SECTOR                   $  6.9               $ 45.4
 
     AUXILIARY ORGANIZATIONS SECTOR             $ 22.2               $ 14.7
 
     GFNORTE'S HOLDING COMPANY                  $  5.4               $ (1.4)
 
     GFNORTE'S NET PROFIT                       $527.2               $463.8
 
     Figures as of March 2001
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65792846
 
 SOURCE  GFNorte